By Andrea Heisinger
New York, April 29 - Praxair, Inc. sold $650 million of notes (A2/A/) in new and reopened tranches on Monday, an informed source said.
The sale includes $475 million of 1.25% notes due 2018 priced at 99.958 to yield 1.258% with a spread of Treasuries plus 58 basis points. Guidance was in the low Treasuries plus 60 bps area.
There is a make-whole call at Treasuries plus 10 bps.
There was also a reopening of 3.55% bonds due Nov. 7, 2042 to add $175 million. The new bonds priced at 96.035 to yield 3.774% with a spread of Treasuries plus 88 bps. The tranche was talked in the 90 bps area.
The reopened bonds will have a make-whole call at Treasuries plus 10 bps until May 7, 2042 and a par call after that date.
Total issuance of the notes due 2042 will be $475 million, including $300 million priced at 68 bps over Treasuries on Nov. 2, 2012.
Bookrunners were Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC and RBS Securities Inc.
Proceeds are for general corporate purposes, including debt repayment and share repurchases under a repurchase program.
Praxair was last in the market with a $500 million sale of 1.2% five-year notes priced at 45 bps over Treasuries on Feb. 27.
The industrial gas company is based in Danbury, Conn.
| Issuer: | Praxair, Inc.
|
| Issue: | Notes
|
| Amount: | $650 million
|
| Bookrunners: | Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, RBS Securities Inc.
|
| Co-managers: | BNY Mellon Capital Markets, LLC, Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, SG Americas Securities, LLC, U.S. Bancorp Investments, Inc., Wells Fargo Securities, LLC
|
| Trade date: | April 29
|
| Settlement date: | May 7
|
| Ratings: | Moody's: A2
|
| Standard & Poor's: A
|
|
|
| Notes due 2018
|
| Amount: | $475 million
|
| Maturity: | Nov. 7, 2018
|
| Coupon: | 1.25%
|
| Price: | 99.958
|
| Yield: | 1.258%
|
| Spread: | Treasuries plus 58 bps
|
| Call: | Make-whole at Treasuries plus 10 bps
|
| Price talk: | Low 60 bps area
|
|
|
| Notes due 2042
|
| Amount: | $175 million, reopened
|
| Maturity: | Nov. 7, 2042
|
| Coupon: | 3.55%
|
| Price: | 96.035
|
| Yield: | 3.774%
|
| Spread: | Treasuries plus 88 bps
|
| Call: | Make-whole at Treasuries plus 10 bps to May 7, 2042, par call after
|
| Price talk: | 90 bps area
|
| Total issuance: | $475 million, including $300 million priced Nov. 2, 2012
|
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